Domestic Air Travel is Thriving: Qantas CEO

While Qantas' international business is suffering, its domestic operation - on the other hand -is thriving, Chief Executive Alan Joyce told CNBC on Monday.

"In our portfolio, Jetstar is making record money, our frequent flyer programme is making record money, our domestic business - both our regional and our Qantas domestic business - are also doing well," JOyce said. Jetstar is Qantas' budget carrier brand.

He expects, however, international demand to return once the market for business travelers recover.

Joyce that the carrier will continue to offer first class seats after it completes a new seat configuration, the details of which he said are expected to be announced in a few weeks.

He hinted though, that that the enhancements to first class may not be as considerable as in the past.

"We think that investment (in first class) is to continue but the business class product has become as good as the first class product was 10 years ago and the reason we're all for first class but it's not as extensive as it was in the past because the business class product is just as good.

Joyce also panned critics who'd previously called for the end of the low-cost carriers on back of skyrocketing oil prices, and maintained there is a market for both high-end and no-frills travel.

"Two years ago some of the same commentators were claiming that the low fares market was dead as consequence of higher fuel price, and that's turned on its head in a very short period of time," said Joyce.

"We absolutely believe there is a role for both segments of the market. We believe that Qantas can have the world's best premium airline and the world's best low fare airline."